iChat and Apple Messages are the same program, but the new name is unsearchable.
My last name is Esrati. For all the years of having it misspelled, mispronounced and having to answer questions about it’s origin, it became an amazing asset with the advent of the search engine. If you search for me, you’ll get one of three people, me, or my parents.
Apple had an application called “iChat” for years. With the advent of System 10.8 it went from being iChat to becoming the innocuous sounding “Messages” and that’s when Google suddenly became useless. iChat was a very specific program that ran on the mac, while “Messages” are what every email program sends- as well as every other chat program- and, how many times have you searched for “Error message….XYZ” All of a sudden, access to useful, pertinent information about a very specific program became impossible to find via search.
The branding geniuses at Apple apparently don’t use Google.
This isn’t the first time that Apple has made things difficult by not thinking about naming conventions. The Apple Macintosh has had an issue since the 2nd version came out. The original mac only had 128mb of RAM, version 2 has 512mb of RAM, but there wasn’t any indication that this Mac was different unless you got into the tiny print on a label on the back of the machine- and knew Apples product code or some such. The market had to distinguish between these two products- and version 2 became known as The Apple Fat Mac 512″ Hardly the marketers dream name.
Car makers generally try to avoid this problem by identifying products by model year and trim levels. Computer makers seem to be horrified by attaching a date to a computer, and at some point, Apple started naming models with nomenclature like “mid-2010” as if that’s more helpful than simply calling it by a model number- version 2.1 which Apple finally began doing, but only if you could boot the mac and check in “About this Mac.”
Branding and choice of names, be it in the company name (Apple had a long running lawsuit with Apple Corps, the Beatles label, over the name costing Apple hundreds of millions of dollars.).
When looking for a name of a product or your company, there is a lot more to it than making it easy to remember or spell or search. Make sure you think before you name, since it can become a very expensive and difficult proposition to fix later, or as in the iChat/Messages example- make your valued product worth considerably less to it’s users as frustration trumps productivity.
We had high hopes for the AMC series “The Pitch” when it debuted last year. We thought we’d try our hand at a little social media leverage by previewing each episode- with predictions, analyze the client, the agencies, and then do a post show discussion video review. It took up time- it generated some traffic, we made a few connections with some cool people like Mark DiMassimo of DIGO- but, overall, we were highly disappointed with the show and the manipulative editing- and the insanity of the short pitch process. Turns out, the agencies that participated last year didn’t want anything to do with it this year- and for good reason, most of the clients weren’t sophisticated enough to either have a good brief- or the good sense that this is nothing other than an expensive PR stunt- that was watched by a very small audience.
Our recommendations to improve the show included having someone – preferably an outsized ad personality like Jerry Della Femina, as a host- who would work with the client to help guide the process, and provide some consistency from episode to episode. Studio Lambert apparently didn’t change anything- only this time, there isn’t an agency on the roster that we’ve heard of. Last year, they had Wong/Doody now known as WC/CW, BooneOakley, DIGO and the AdStore (2x) – which gave the show a little credibility. Here is the PR from AMC- but, we decided to make the post useful- by adding links- so you can investigate each on your own:
Season 2 consists of eight one-hour episodes and is premiering Thu., Aug. 15 at 10/9c.
The Ad Age article talks about how many big agencies and networks turned down the offer to be on the show. They say “The most recognizable on the list is Commonground, a gold winner in Ad Age’s Small Agency of the Year competition last year” but, I guess that being a gold winner in their competition is like winning a local ADDY- it means something to the shop and the client- but not anyone else (we’ve won our share).
If we had a ton of time, we’d try to figure out what the annual marketing budgets were for each of these clients- our guess is that 1-800 Flowers and Little Caesars lead the pack and “College Hunks Hauling Junk” are one step above flyers at Kinko’s.
It would also seem that agencies that focus on multi-cultural got a little more representation this season, maybe thanks to the spot that Muse Communications did called “White Space.” Not that advertising is any less of a “Caucasian occasion” for most of the industry.
It seems like the show also avoided filming in NYC, probably because of the higher costs. Chicago, Nashville, LA for this season. As soon as we find the matchups and the episode numbers we’ll post.
When it comes to branding, naming your company after your location isn’t a great idea. We watched a hair salon move four times from it’s original eponymous address 23 Second Street and the local grocery chain, Dorothy Lane Market doesn’t have a single location on Dorothy Lane.
Of course, that’s just in the name, but what about your audience? A local company makes tarps and tents. They’ve been doing it since 1948, and only see two markets, farmers and local tent rental. The only advertising they do is in a farm equipment guide. Are they self-limiting their brand and their sales? Of course. Every roll-off construction dumpster needs a tarp to cover the debris as they haul it to the dump, yet, despite making the same product to cover grain trucks, the demolition and waste hauling markets are ignored.
Sometimes companies get confused about what they really sell. Department stores used to be a convenience, in that all the things you need for your household are in one place. That was great until malls came around and did the same thing, only the specialty shops within the mall often offered more focused service, and a better branding experience. The reason for a department stores existence stopped once every single department was duplicated in the mall- at least to younger shoppers. Sears was the sole exception, having built strong brands in Craftsman, Die Hard and Kenmore, while the rest depended on other peoples brands to carry them.
Amazon is what it is today, because Jeff Bezos specifically didn’t call it Amazon Books, but just Amazon. Don’t limit your brand by making it synonymous with your first product, and don’t think any company only has, or will have just one market, because limiting your vision will limit your ability to grow in the future.
As Google continues it’s march into personalization of search results, before long, online commerce sites will be paying for access to your social graph to predict what items show up on your landing page. It’s not far off from what Amazon does by studying your past purchases, comparing them with what others like you have bought and making recommendations. But, sure, we’re talking about online digital items, not physical stores, where moving the atoms around for a box of laundry detergent is a whole other matter right? Wrong.
Google is even trying to map the interiors of buildings now. Not only will they know how to direct you to the bathroom, but, they’ll be able to guide you to the box of Tide in aisle 9. Combine a few other retail technologies, like the electronic price/item labels on the gondola shelving and you could have the shelf label glow a special color as you near the vast selection of detergents.
And the funny thing is, this kind of tech doesn’t require Google glass, or massive changes in the way the systems are built- it just requires the graph to be allowed to grow. Some of this social engineering may make our lives easier, but, it may also start insulating us from having to choose, to make informed intelligent decisions. Others may think it will liberate us from the mundane tasks so as to go on to bigger and better ideas and move humanity to a higher level.
Another aspect of this connected world, might be a whole new world of point of sale advertising- or, comparison ads. The basics are already there on the shelf- if you look at a cost per ounce price for comparison, but imagine being given an option to review a competitors paid last ditch pitch on why you should convert brands? You’d get paid a small amount of store credit, to view the comparison and then choose. If you choose the competitors brand- it would be added to your graph, and next time, you’d be asked, last time you switched from Tide to Era, did you prefer the Era? And so your graph would continue to grow.
Big data may drive a lot of the suggestions, but in the end, it’s just consumers voting with their pocketbooks like they’ve always done, that will drive markets. Of course, when everyone’s connected, all the time, and suggesting and rating, and we have perfect access, the cycle of success or fail may be shortened.
Going back to the old “Pepsi Challenge”- where more people picked Pepsi when blind taste tests were done, sometimes consumers stick with a brand for purely emotional attachment no matter what. If you want to win in the store of the future, maybe the key is understanding how to build emotional attachment points into your product/brand/service that can’t be overrun by the data revolution.
An advertisers life was much easier when there were only 3 tv networks. Reaching everyone in the country wasn’t too difficult. Now, we know that even presidential campaigns need to spend billions to reach the entire country- and even then, there is overkill since there are still a lot of people who aren’t even registered to vote.
In doing some research for a friend into software for his medical practice, I came across a new marketing channel- attached to a software as a service. Doctors are mandated to switch to Electronic Health Records as part of “Obamacare” and by insurers including Medicare/Medicade. Practice Fusion is a provided of a software as a service solution- and instead of charging physicians for the system, they are counting on advertising to support the system:
How is your EHR free?
We have a unique ad-supported model. This allows us to provide a world-class EHR technology at no cost to you. These ads never pop up, never interfere with your workflow, and only display one at a time—see a sample ad here. We also make sure to provide you with ads that add value, such as co-pay coupons for your patients. A paid ad-free version of the EHR is available upon request.
With pharmaceutical companies spending hundreds of millions to reach physicians to inform them of their newest drugs- Practice Fusion is in the enviable position of being able to put an ad in front of a physician while in the process of prescribing for that exact ailment. The ultimate sponsored search ad may be helping to keep the costs of health care down.
What other new media channels are being built to reach very specific markets by providing service in exchange for attention?
Imagine what could happen when textbook companies see this as the new model?
Will Google enter this focused market model too? It could be even more lucrative than search.
We were invited to a pitch today. The potential client has grown quickly and out grown the agency they had. This is always an unfortunate situation, but, it’s always better to refocus early, before things get totally out of wack.
In a fast growth market, there are certain places a brand wants to be: first, biggest, most well known. Ideally, all three. The problem comes when you’re none of the above and searching for an added edge to continue your growth. This pitch was a bit different, in that we weren’t given much time (a week) and we weren’t given a brief, it was more of a capabilities presentation. Of course, the first question coming out of the audience (it’s a franchise organization so there were a lot of bodies in the room) was have you done work for someone like us before? The old catch 22 question which is why the old industry adage of “it’s better to be lucky than good” often comes to play in matching agencies to clients. Or, as they also say- it’s not what you know, but who you know.
In our background research we were finding that they are in a segment experiencing phenomenal growth. They’re on the map as a one to watch. The problem is, the number one player in their field, carved a niche away from the original number one by offering a very clear point of differentiation and then proceeded to own the niche like it’s the main event. The number two and three brands have been busy trying to out niche the leader and our potential client was trying to play leapfrog on the very same platform.
This is what challenger brands should never do. Don’t play follow the leader. Don’t assume that what works for the leader can be copied, duplicated or improved- need proof, how’s Barnes and Noble really doing vs Amazon in just the eBook reader market? Never mind the selling of books. If you are going to be a challenger brand, the most important thing that you can discover to build a strong brand DNA is your brands “unique selling proposition,” a concept developed by Rosser Reeves for the Ted Bates Agency in the fifties. Brands that find their USP find that their products and services are much easier to sell and have a conversation with their customers because there is no cloud of confusion surrounding their products. Apple is a great example of a challenger brand that still isn’t the biggest by market share, but has grown from near bankruptcy to the most valuable company in the world based on the USP of products that are beautiful and easy to use. Google has grown by proving itself useful. Neither were first to market, but both found that by sticking to simple messaging they could own a position that could be unique to them. You’d think that other computer companies would figure out that ease of use is important, but it hasn’t happened yet.
While McDonalds and Burger King and sometimes Wendy’s, Hardee’s, Jack in the Box and countless others fought to be “THE” burger chain, Subway grew to have the most outlets by focusing on a more approachable business model with easier entry for franchisees. Five Guys is making all the burger joints look twice at trying to be something for everyone, as they stick to the knitting of making a better burger. When McDonalds began, there were no chicken nuggets, salads or coffee bars, it was burgers, fries and milkshakes.
If you want to be a challenger brand, that’s fine. But, the truly great understand that to steal a phrase from designer/author Marty Neumeier, in his book, “Zag“, “when others zig, zag.” He stresses the need for radical differentiation. It’s not just enough to talk about a strategy, you have to actually have one. Five Guys isn’t winning the burger wars because they have free peanuts, it’s because they hyper focused on a better burger and a simplified menu in a no-frills space.
Challenger brands that find their USP and convey it in a clear, differentiated voice, soon find themselves in a category all of their own. Find your USP, or find an agency that you can talk to about finding it, and you’ll be on your way to success.
Apple is famously and profitably successful because of their attention to design detail and simplicity and consistency of their user interface. And while they’ve made more than a few mistakes along the way, the replacement of the Google maps application which has been a part of the iOS operating system from day 1, may become a classic business case study in what not to do.
Taking away benefits/functionality from your customers without their consent is a very dangerous move.
To summarize what happened- Apple and Google are no longer friends because the open source Android mobile operating system has gone head-to-head with the proprietary and highly regulated Apple iOS. Apple deleted the Google Maps application in favor of their own mapping software with iOS6- despite it not being either an improvement or even a good replacement for the original software. When you start making the New York Times about your product changes, it should be a bit of a worry.
Apple’s reckless deletion of functionality of transit maps in their iOS6 mapping app brings satire to the surface
Missing are the highly useful public transit details- a system that is invaluable in NYC, and much of the data that has been tweaked and refined over the years by millions of users. Frankly, Apples map program is being forced on users as an “upgrade” when it isn’t. This isn’t what the customer bought when they bought their iOS devices.
The right to take away a purchase after it’s been bought is a slippery slope, that smacks of “Big Brother” – the very same one that Apple so famously rallied against in their classic Superbowl ad 1984 that launched the Macintosh. What’s next- publishers having the right to come to your home and take back books that you bought because they were too useful? (Textbook manufacturers are becoming guilty of this- but that’s another matter).
Rumors abound that Google is going to release a version of Maps via the Apple store- however, that would and could possibly sink the chances of the Apple maps app from ever reaching parity. Digital maps data is improved by the size of the user base, a primary reason Google was probably willing to allow Apple to use their data when the iPhone launched before they had an Android OS.
Google could probably rake in millions by selling their app on the iTunes store now, but the shopkeeper, Apple, despite a chance to gain 30% of sales may still block it from happening (debate is raging on this subject).
But this is a lesson for all marketers. The restaurant that used to offer free bread that now charges, the gas station that stops offering free air both risk alienating customers by taking away something that was previously accepted. Once one fast food chain began offering free refills on soda for dine in, going back is nearly impossible as is not offering the same option.
Apple may be getting cocky at the wrong time and place as the newest king of corporate monopoly, but we’ve seen companies make potentially fatal flaws before: thinking they know what’s best for their customers and trying to force a reset. Quikster anyone?
Facebook stock is being hammered. Wall Street and even Facebook itself, doesn’t understand the value of the business. It’s not an ad platform- it’s a social site, a private party. When advertisers stop thinking they have the right to interject themselves in everything, they may start having some real success. The key for businesses on Facebook is to be invited to the party. The secret to that is better market research- and that’s where Facebook is the holy grail of consumer data. We know who your friends are, where they are, what they are doing- all from the aimless chatter.
Facebook needs to monetize data, not users.
Reading in the New York Times:
For its stock price to go up, Facebook has to convince Wall Street analysts and investors that the personal data its 955 million users share about themselves can be better used to make money. Despite the fact that Facebook has information about a user’s friends, habits and photos, advertisers are not convinced that Facebook ads are more effective than online ads appearing elsewhere.
So far, its revenue comes largely from advertising and from proceeds of virtual games that people pay to play on the Facebook platform. On both counts, Facebook has struggled, as the company reported slower sales in its earnings report in late July. Its users are increasingly logging in to their accounts on mobile devices, where Facebook has only recently — and cautiously — started selling advertisements.
Facebook has to be careful about intruding with ads in the limited screen environment. With customers facing data caps on mobile devices, the only way advertising will be welcome is if those advertisers subsidize their data plans, or offer real services or additional value in return for their interruption. If you need a case study of an internet behemoth failing because they refused to respect their users and community, just study the fall of AOL.
While advertisers still believe they should have the right to engage for supporting “free content” they have to realize that now, more than ever, you can only earn that right by offering a premium service in return. Look what the iPod did to CD sales, or what online music services have now done to the iTunes store. Is it becoming clear?
Facebook is social media- stop trying to turn it into commercial media.
In the Internet radio wars we have newcomer, the Swedish Spotify vs. the US based Pandora. Usually, the first mover has the advantage, but in the incredibly fickle world of music powered by technology, being the new kid on the block may give you an advantage to roll out a different flavor faster.
If you are a Spotify Free user, you have probably heard the ads about how the company rolled out free mobile radio similar to Pandora where users create stations based on artists and/or songs.
Our latest app features free radio – the only radio where you can save the songs you love. Now you can discover, save and enjoy an unlimited amount of music on the go.
Here’s how it works
Create stations based on any song, artist, album or playlist, and let Spotify bring you one great song after another.
When you like a song, give it a thumbs up and it’ll be saved to a Spotify playlist on your desktop. So you can listen whenever you like.
Get busy with your thumbs
By liking songs, you’ll help to personalize your stations – meaning they’ll play more of the music you want to hear.
Premium users can enjoy a premium radio experience that’s ad-free. Free users, you’ll hear occasional ad-breaks just like you do on your desktop.
So get the free app now to enjoy mobile radio – Spotify-style!
Free radio in all its glory
Free radio is powered by the entire Spotify catalog, the biggest of its kind.
Unlimited songs and stations – listen forever!
Like a song? Save it to your Spotify playlists with a thumbs up.
Great music choices from our shiny new recommendation engine.
Taking a quick look at both of them, they have a few more differences than similarities. Spotify has the ability for users to pick and choose the artists and songs they want to listen to on demand for free on computers ($9.99/month on mobile devices), whereas Pandora does not. With Spotify’s new radio function, which works similar to Pandora, users can “star” or “thumbs up” songs to save to them on the Spotify app and listen to them whenever they want. It’s likely that this will make Spotify reign supreme in the world of internet radio. Where Pandora users are used to constantly giving thumbs up or down to songs, Spotify users can simply thumbs up a song then listen to it whenever they want.
Beyond features, Spotify appears to have much better social media integration than Pandora, especially with Facebook. In fact, Facebook integration was an obvious focus for the Swedish company; users with the Spotify app enabled have their activity displayed on the timeline and can share songs and playlists. It should be noted that Spotify forces users to sign up through their Facebook account whereas Pandora does not, but this quirk is made up for by the flawless social media integration.
From our standpoint Spotify has got everything that Pandora has and more, even at the free level. The only thing that Pandora had over Spotify was their mastery of internet radio. Now that Spotify Radio launched on mobile, it’s going to force Pandora to react.
Considering the ultimate goal is to be able to deliver highly targeted ads or get paid to be the end users only music source, none of this is good for old fashioned terrestrial radio which failed in every way to react and adjust to the changes the Internet has forced on them. It will be interesting if at some point, Pandora and Spotify will find a standard for selling ads so that local businesses can target their most likely customers.
There is a difference between selling Apple products and clothes. Ron Johnson, formerly Apple’s retail chief and the new CEO of JC Penney is finding that out quickly. Critics of his move from constant sales to an always fair pricing strategy are having a field day with a Forbes article calling it an “Epic Rebranding Fail”
But nevertheless they launched “Fair and Square Pricing” whereby promotions and sales would be a thing of the past, for the most part, and in their stead would be everyday prices, “best prices” which would be available to consumers on the first and third Friday of each month, plus they would mix in some month-long values, too.
The new tagline ”Enough. Is. Enough.” would speak to the belief that consumers were inundated with promos, coupons and sales and what they really wanted was just plain, old-fashioned, everyday low prices.
It’s easy to armchair quarterback these bold moves, many (including this author) thought when Apple decided to open bricks and mortar stores it was a move in the wrong direction. Gateway had failed miserably doing the same thing- and yet, Apple is now considered the most profitable retailer on the planet.
However, there is a big difference between JC Penney and Apple- JC Penney is more of a curator of retail while Apple is the owner of the product. Yes, I can get Apple products elsewhere, but at an Apple store I’m dealing direct. At JC Penney, I can get the products elsewhere and anywhere- there is no exclusivity to what JC Penney sells- or what the brand stands for.
JC Penney Doesn’t Pass the Hand test
Put your hand over the logo and you still know what company made the product and the ad.
In Marty Neumeir’s classic book, “The Brand Gap” he uses Apple as the example when introducing “The Hand Test.” If you cover up the logo of the product in the ad- will you know what the product is? Apple passes with flying colors. JC Penney can’t ever do this. Their products, the brands they sell, their brand itself isn’t able to stand on it’s own. By their very nature, the department store model is nothing other than the supermarket of shopping in comparison to the convenience store. Same products, different experience in selection and purchase. There is nothing exclusive to JC Penney products and once you buy them, they belong to you- not to JC Penney. Compare that to Apple. Once you have an iPhone or a MacBook Air- the brand cachet is still there and there is a connection between you and the brand.
Pricing isn’t a strategy- it’s a tactic
This seems to be the part that Mr. Johnson missed in Marketing 301. Price alone isn’t why people buy- it’s perceived value that is critical. What does JC Penney add in value to the products they sell? Well, nothing really. Do we have any reason to trust JC Penney as a qualified curator of value? Nope. They’ve been through three rebrandings in as many years- and even before that, it’s been a long time since JC Penney held any kind of unique position in the eye of the consumer- if ever. For most consumers the JC Penney brand could go away tomorrow and they wouldn’t miss it. We’ve seen it before as Macy’s has gobbled up other regional department stores, rebranded them and customers barely skipped a beat. The brand name of most department stores stands for nothing- possible exceptions being Neiman Marcus which once stood for exclusivity and expensive, Nordstrom which built a reputation on amazing customer service and Sears which had brands like Craftsman, Kenmore and Die Hard that stood for solid American values.
JC Penney is a brand without a position. And since brands aren’t controlled by the marketer, but by the consumer, the way they introduced their new positioning of the brand has been way off target. Pointing out that consumers are tired of being assaulted with ads promising values based on inflated initial pricing is true. Focusing on the competition isn’t usually the best way to spend your advertising dollar. Yes, consumers know that MSRP is a joke, and from diamonds to donuts, everyone wants to pay less- but, are always willing to pay a little more for perceived value. Where is the value proposition for JC Penney?
The Value of “Fair and Square Pricing”
We believe in fair honest prices. When gasoline is sold for dollars per gallon, it’s insane that we still see $3.59.99 prices, especially when the penny, the 1cent piece, is on the verge of being done away with. The old psychology of .95 or .99 cent pricing to erase perceptions of whole dollar prices being more may still work with the geriatric set, but younger consumers are less likely to be swayed by it. The value of JC Penney not manipulating prices up and down is great- but, when buying fashion, the brand needs to stand for something. We’ve seen denim jeans elevated from durable work clothes to designer label with outrageous price tags- yet, say the word JC Penney and what emotional trigger do they hit?
Our friend Sally Hogshead lists seven triggers in her book Fascinate: Passion. Mystique. Alarm. Prestige. Power. Rebellion. Trust (well, actually, she changed Lust to Passion and Vice to Rebellion just to be absolutely correct). You can find out more about the seven triggers here: The Fascinate System If JC Penney is going to rebrand and be relevant to the consumer, they need to at least score highly on one or two of the triggers. right now, they don’t. Is “Rebellion” against sales and manipulation enough? Hardly, Walmart and Target have been promising some sort of everyday low prices for years.
The “Enough. is. Enough.” line is more about the mendacity of marketing than about the value to the consumer. The TV spot introducing the new pricing is enough to instantly annoy a viewer who already views TV commercials an intrusion to their entertainment.
It will take JC Penney more than a few quarters to transform themselves into a value retailer, which many consumers may find attractive as they grow to understand it. Think about how most department stores are deployed- in a mall with several other competitors. Shoppers go to the mall to find fashion, after looking in Macy’s, Sears, and the other two anchor stores, as well as places like The Gap, Hollister, Abercrombie & Fitch, Aeropostal etc Penney’s may win over converts if they can get consumers to come through their doors to compare. Changing the experience of shopping can take time and while the pundits are quick to write this concept off, once JC Penney finds its new voice and can trip one or two more emotional triggers, they may find the success they are seeking.
Knowing what your brand stands for in the consumers head is the first step to making the sale. Since the consumer controls your brand, changing those perceptions isn’t an overnight or several quarter effort. We believe that Mr. Johnson has the right tactic but needs to find the strategy to convince customers that the value of “Fair and Square Pricing” is more than just saving a few bucks- it’s a statement above fashion about fashion.
Yes, consumers are tired of being lied to, but, they still want the mirage of an oasis beyond the doors to your store.
When wearing clothes from JCPenney becomes a fashion statement (I have the common sense not to be gullible), JC Penney will win.